CClleevveellaanndd SSttaattee UUnniivveerrssiittyy EEnnggaaggeeddSScchhoollaarrsshhiipp@@CCSSUU Law Faculty Articles and Essays Faculty Scholarship Fall 2016 WWhheenn SSttaatteess'' LLeeggiissllaattiioonn aanndd CCoonnssttiittuuttiioonnss CCoolllliiddee wwiitthh AAnnggrryy LLooccaallss:: SShhaallee OOiill aanndd GGaass DDeevveellooppmmeenntt aanndd IIttss MMaannyy MMaasstteerrss Heidi Gorovitz Robertson Cleveland-Marshall College of Law, Cleveland State University, [email protected] Follow this and additional works at: https://engagedscholarship.csuohio.edu/fac_articles Part of the Constitutional Law Commons, Environmental Law Commons, Natural Resources Law Commons, and the Oil, Gas, and Mineral Law Commons HHooww ddooeess aacccceessss ttoo tthhiiss wwoorrkk bbeenneefifitt yyoouu?? LLeett uuss kknnooww!! RReeppoossiittoorryy CCiittaattiioonn Robertson, Heidi Gorovitz, "When States' Legislation and Constitutions Collide with Angry Locals: Shale Oil and Gas Development and Its Many Masters" (2016). Law Faculty Articles and Essays. 886. https://engagedscholarship.csuohio.edu/fac_articles/886 This Article is brought to you for free and open access by the Faculty Scholarship at EngagedScholarship@CSU. It has been accepted for inclusion in Law Faculty Articles and Essays by an authorized administrator of EngagedScholarship@CSU. For more information, please contact [email protected]. WHEN STATES’ LEGISLATION AND CONSTITUTIONS COLLIDE WITH ANGRY LOCALS: SHALE OIL AND GAS DEVELOPMENT AND ITS MANY MASTERS HEIDI GOROVITZ ROBERTSON* INTRODUCTION ............................................ 58 I. THE MANY MASTERS OF SHALE OIL AND GAS PRODUCTION: LEGISLATION, CONSTITUTIONS, AND THE COURTS........... 61 A. Ohio’s Oil and Gas Law ........................ 61 B. The Ohio Constitution’s Home Rule Provision....... 68 C. Local Control Under Ohio’s Oil and Gas Statute .... 73 1. Local Control Through Local Legislative Action ................................. 73 a. Local Ordinances: Warren, Ohio ..... 75 b. Another Attempt at Local Control: Munroe Falls, Ohio ................ 76 1) Munroe Falls in the Ohio Court of Appeals (Ninth District) ...... 77 2) Munroe Falls in the Supreme Court of Ohio ............... 84 3) Oral Argument.............. 86 4) The Decision of the Ohio Supreme Court...................... 88 5) Beck Energy Sues Again...... 91 2. Drilling Bans by Voter Initiative........... 94 a. Local Ban on Injection Wells for Waste Disposal Leads to Drilling Ban: Mansfield, Ohio ................... 95 * Heidi Gorovitz Robertson is the Steven W. Percy Distinguished Professor of Law at the Cleveland-Marshall College of Law and Professor of Environmental Studies at the Levin College of Urban Affairs, Cleveland State University. The author thanks her student research assistants, Kathryn Stovsky, Elizabeth Bonham, and Lawrence Boothe, and the Cleveland-Marshall College of Law Library, for their exemplary work on this project. Thanks also to the Cleveland-Marshall Summer Research Fund. Early versions of this work were presented at the University of Petroleum and Energy Studies, Dehradun, India, the University of Pittsburgh’s Workshop on the Regional Impacts of Shale Gas Drilling, the Northeast Ohio Law Faculty Colloquium, and the International Academic Association of Planning, Law, and Property Rights 10th Annual Meeting. Thanks to all involved for their comments and suggestions, though responsibility for the final product, of course, is mine alone. 55 56 WM. & MARY ENVTL. L. & POL’Y REV. [Vol. 41:55 b. Community Bills of Rights: Drilling Bans Through Local Charter Amendment... 97 1) A Community Bill of Rights Defeated in Favor of a Study Commission: Gates Mills, Ohio ...................... 98 2) Challenges to Rights-Based Drilling Bans: Broadview Heights, Ohio.............. 100 3) Community Bill of Rights in Other Ohio Jurisdictions..... 102 3. More Methods Ohio Local Jurisdictions Use to Attempt to Influence Drilling............. 104 a. Influencing Drilling by Regulating Related Activities................. 104 b. Controlling Drilling by Using the Administrative Process............ 105 c. Next Steps for Local Jurisdictions: Thoughts from the Regional Commission to Study and Address Shale Oil and Gas Development .................... 108 II. LOCAL CONTROL IN OHIO’S MARCELLUS AND UTICA REGION NEIGHBORS........................................ 110 A. Pennsylvania ................................ 110 1. Legislation: Pennsylvania’s Act 13 ........ 111 2. The Pennsylvania Constitution ........... 113 a. The Home Rule Provision.......... 113 b. The Environmental Rights Amendment ..................... 114 3. Judicial Interpretation: Robinson Township v. Commonwealth of Pennsylvania........... 114 a. Background ..................... 115 b. Robinson Township in the Commonwealth Court........................... 115 c. Robinson Township in the Pennsylvania Supreme Court................... 117 1) The Environmental Rights Amendment ............... 117 2) Act 13’s Section 3303........ 119 3) Act 13’s Section 3304........ 119 2016] WHEN STATES’ LEGISLATION & CONSTITUTIONS COLLIDE 57 4) Conclusion re: the Pennsylvania Supreme Court’s Decision.... 120 4. Pennsylvania Conclusion: Environmental Rights Amendment Serves Pennsylvania Communities .......................... 120 B. New York ................................... 122 1. New York’s Constitution and Legislative Background ........................... 122 2. New York’s Oil and Gas Statutes.......... 123 3. New York Law as Compared with Pennsylvania and Ohio.............................. 124 4. Other Local Ordinances Enacted in New York ............................. 126 5. A Critical Wrinkle in New York: The Statewide Drilling Ban........................... 129 6. New York Conclusion: “Little NEPA” Sets New York Apart ............................ 131 III. A QUICK LOOK AT LOCAL CONTROL ELSEWHERE .......... 134 A. Colorado.................................... 134 1. Constitutional Home Rule Authority....... 134 2. The Colorado Oil and Gas Conservation Act and Commission (“COGCC”).............. 135 3. Colorado Oil & Gas Preemption in the Courts............................. 136 B. Texas....................................... 140 1. Texas’s Constitutional Home Rule Authority ............................. 140 2. Erosion of Home Rule in Texas ........... 141 CONCLUSIONS............................................ 143 A. The Fantasy World ........................... 144 1. An Environmental Rights Amendment..... 144 2. Statutory and/or Judicial Clarity Regarding Local Regulatory Authority .............. 145 3. Environmental Review .................. 146 B. Reality in an ex rel. Morrison Environment ....... 146 1. Traditional Zoning...................... 147 2. Health and Safety Ordinances............ 147 3. Voluntary Agreements Amongst Neighbors.. 148 4. What Local Jurisdictions Can Do Today.... 149 58 WM. & MARY ENVTL. L. & POL’Y REV. [Vol. 41:55 INTRODUCTION This Article addresses the essential struggle between a state’s interest in facilitating shale oil and gas production by creating a uniform statewide regulatory process and local governments’ interest in protect- ing residents’ safety, wishes, and environment by exerting control or influ- ence over drilling activities within their jurisdictions. Local jurisdictions1 across the country are paying attention to the shale oil and gas boom.2 Some jurisdictions want to encourage it, hoping it will bring jobs, custom- ers, and tax revenues.3 Others want to control it, fearing the environmen- tal damage it may cause.4 Many would like to require it to operate, if at 1 “Local jurisdiction” or “locality” in this Article, includes chartered municipalities and non-chartered municipalities that are entitled home rule authority under the Ohio Constitution, article 18, section 3, as interpreted in N. Ohio Patrolmen’s Benevolent Ass’n v. Parma, 402 N.E.2d 519, 523–25 (1980). 2 See, e.g., Laura Arenschield, Athens Votes to Ban Fracking, THE COLUMBUS DISPATCH, Nov. 6, 2014, http://www.dispatch.com/content/stories/local/2014/11/05/athens-votes-to -ban-fracking.html [https://perma.cc/84FB-PVPT]; Laura Arenschield, Ohio Counties Can’t Vote to Ban Fracking, Husted Rules, THE COLUMBUS DISPATCH, Aug. 14, 2015, http://www .dispatch.com/content/stories/local/2015/08/13/Fracking-ballots-nixed-by-Husted.html [https://perma.cc/C27L-ZCQX]; Youngstown Voters Turn Down Anti-fracking Proposal— Again, THE YOUNGSTOWN VINDICATOR, Nov. 7, 2014, http://www.vindy.com/news/2014 /nov/07/youngstown-voters-turn-down-anti-frackin/ [https://perma.cc/9EHK-YX6J] (dis- cussing the four-time failure of local drilling ban legislation in the industry-oriented city of Youngstown). See also Michael Shellenberger & Tod Nordhaus, Campaign to Stop Fracking Sacrifices Nature for Ideology: Column, USA TODAY, July 16, 2015, http://www .usatoday.com/story/opinion/2015/07/16/natural-gas-renewable-fuels-fracking-column /27089397/ [https://perma.cc/KP2W-ZTFK]; Dan Elliott, Colorado’s High Court to Decide if Cities Can Ban Hydraulic Fracturing, CBS DENVER (Sept. 21, 2015), http://denver.cbs local.com/2015/09/21/colorados-high-court-to-decide-if-cities-can-ban-fracking-2/ [https:// perma.cc/RA6L-3EAX]; Susan Phillips, Pennsylvania Supreme Court to Hear More Argu- ments on Act 13, STATEIMPACT: PENNSYLVANIA (Oct. 30, 2015, 3:12 PM), https://stateimpact .npr.org/pennsylvania/2015/10/30/pennsylvania-supreme-court-to-hear-more-arguments -on-act-13/ [https://perma.cc/T9F7-LMK4]. 3 See, e.g., Youngstown Voters Turn Down Anti-fracking Proposal—Again, supra note 2; Youngstown, Ohio is a City Changed by Fracking, BUFF. NEWS, Feb. 21, 2015, http://www .buffalonews.com/city-region/youngstown-ohio-is-a-city-changed-by-fracking-20140518 [https://perma.cc/PCH3-ACBY]; Ohio Oil & Gas Ass’n (OOGA), proponent testimony supporting Ohio H. Bill 278 before the Ohio H. R. 125th Gen. Assembly Energy and Env’t Comm., Oct. 8, 2013, http://208.68.184.222/wp-content/uploads/2011/12/HB278TESTesti mony-1.pdf. 4 See, e.g., Aaron Marshall, New Quinnipiac Poll: Ohioans Want Hydro-fracking Stopped Until More Study is Done, THE PLAIN DEALER, Jan. 20, 2012, http://www.cleveland.com /open/index.ssf/2012/01/new_quinnipiac_poll_ohioans_st.html [https://perma.cc/8URY -33L9] (summarizing recent Quinnipiac polls, finding a margin of seventy-two percent to twenty-three percent of Ohio voters wanted to suspend hydraulic fracturing until there are further studies on its impact, however, the same polls show eighty-five percent to 2016] WHEN STATES’ LEGISLATION & CONSTITUTIONS COLLIDE 59 all, on their own terms—local terms. Local jurisdictions seeking to con- trol or influence the work of the shale oil and gas industry argue it is within their right of self-government to enact ordinances to protect the health and welfare of their citizens and communities.5 They believe some ordinances that are protective of health and welfare may also sometimes effect drilling.6 State legislation in many states,7 including Ohio, suggests the contrary.8 For example, in Ohio, the legislature long ago enacted the eleven percent of Ohioans believe the industry can create jobs). While public opinion seems fractured, environmental and lobbyist groups loudly oppose the promise of the natural gas economy in Ohio. See Anti-fracking Charter Amendment to be on Nov. 4 Ballot in Youngstown, THE YOUNGSTOWN VINDICATOR, Sept. 2, 2014, http://www.vindy.com/news /2014/sep/02/anti-fracking-charter-amendment-be-nov-4-ballot-yo/ [https://perma.cc/9HXY -BW6B] (showing the tension in attitudes between industry and environmentalist groups on the impacts of drilling for the city). 5 See, e.g., Sara Dorn, Anti-fracking Bill of Rights Will Be on Gates Mills November Ballot After Village Officials Change Stance, THE PLAIN DEALER, Sept. 8, 2014, http://www.cleve land.com/hillcrest/index.ssf/2014/09/anti-fracking_bill_of_rights_w.html [https://perma .cc/DF6U-5L47] (discussing a small-town petition to adopt a charter amendment pre- venting “fracking in the village”). 6 See State ex rel. Morrison v. Beck Energy Corp., 37 N.E.3d 128, 139 (Ohio 2015) (sup- porting the proposition that “municipalities have statutory authority to regulate land uses within zoning districts to promote the public health, safety, convenience, comfort, prosperity, and general welfare.”). 7 In 2012 alone, fourteen states enacted or refined comprehensive oil and gas legislation, which in each state restricted local control to at least some degree. Enacting states included Idaho, Kansas, and Utah. See Jacquelyn Pless, States Take the Lead on Regulating Hydraulic Fracturing: Overview of 2012 State Legislation, NAT. CONF. OF ST. LEGISLATURES 1 (March, 2013), http://www.ncsl.org/documents/energy/NaturalGasDev Leg313.pdf [https://perma.cc/YW7A-E8BC]. In 2015, Colorado and Oklahoma were considering legislation that would explicitly preempt local oil and gas regulation. Id. Some of the proposed measures would allow for certain ordinances (such as those related to road use, traffic, noise, or odor) but would prevent outright bans. According to the National Conference of State Legislatures, numerous states have attempted, or are currently attempting, to preserve local control of fracking in a number of ways including: legislators in ten states have proposed restrictions about where wells can be located and how close they can be to each other, legislators in at least seven states are considering bills requiring additional disclosure rules for chemicals, and legislators in at least nine states are considering measure to regulate the transport, treatment, and disposal of wastewater produced from fracking. Id. In addition, several states (Colorado and North Dakota among them) have joined Wyoming in a lawsuit questioning the Bureau of Land Management’s authority to impose a regulatory framework on what has traditionally been under the jurisdiction of state officials. See Kristy Hartman, Economies of Shale, ST. LEGISLATURES MAG. (June 1, 2015), http://www.ncsl.org/research/environment-and-natu ral-resources/economies-of-shale.aspx [https://perma.cc/75WV-7XX9]. 8 See, e.g., 58 PA. CONS. STAT. §§ 3303–3304 (2016), http://www.legis.state.pa.us/cfdocs/legis /LI/consCheck.cfm?txtType=HTM&ttl=58 [https://perma.cc/3JM2-Y6BF]; N.Y. ENVTL. CONSERV. § 23-0303 (1981), http://codes.findlaw.com/ny/environmental-conservation-law/env -sect-23-0303.html [https://perma.cc/29ES-4LHM]; H.B. 40, 84th Leg. (Tex. 2015), http://www 60 WM. & MARY ENVTL. L. & POL’Y REV. [Vol. 41:55 original Ohio Revised Code section 1509.02.9 In its current form it bestows on the Ohio Department of Natural Resources’ Division of Oil and Gas Resources Management “sole and exclusive authority to regulate” in the field of oil and gas.10 In recent years, the Ohio legislature has lengthened and strengthened this statute primarily with respect to its assertion that it preempts local control in a broad area of oil and gas regulation. Still, some local jurisdictions have enacted outright drilling bans,11 others have enacted local permit requirements, fees, or inspections for oil and gas activities,12 and still others hope to control oil and gas operations by controlling traffic, noise, or aesthetics.13 Some local jurisdictions passed resolutions opposing what they see as the Ohio legislature’s special treat- ment of the oil and gas industry14—by attempting to exempt the industry from all local control. They argue that despite apparent preemption by state legislation local control ordinances should be permissible under the home rule authority they claim through Ohio’s constitution.15 This author- ity purports to grant local jurisdictions “authority to exercise all powers of local self-government and to adopt and enforce within their limits such .legis.state.tx.us/tlodocs/84R/billtext/pdf/HB00040F.pdf#navpanes=0 [https://perma.cc/3L MX-S3Q4]; S.B. 809, 55th Leg., 1st Sess. (Okla. 2015), http://webserver1.lsb.state.ok.us /cf_pdf/2015-16%20ENR/SB/SB809%20ENR.PDF [https://perma.cc/BD2T-UBM4]. 9 OHIO REV. CODE ANN. § 1509.02 (West 2013). 10 Id. 11 Several Ohio cities and towns sought to ban fracking through the November 2014 bal- lot, including the cities of Athens, Youngstown, and Kent. See, e.g., David DeWitt, Anti-frack- ing Group Looks Beyond Ballot Initiative Toward Continuing Efforts, THE ATHENS NEWS, Oct. 29, 2014, http://www.athensnews.com/ohio/article-43560-anti-fracking-group-looks -beyond-ballot-initiative-toward-continuing-efforts.html [https://perma.cc/4H85-B3YT]; David Lange, Restore Rights to Real People, CHAGRIN VALLEY TIMES, Oct. 2, 2014, http://www .chagrinvalleytoday.com/viewpoint/our_viewpoint/article_cb5fba80-4992-11e4-b97a-0017a 43b2370.html [https://perma.cc/MB75-L5BW]; Matthew Merchant, Rallying for Local Frack- ing Regulations, KENT WIRED, Oct. 12, 2014, http://www.kentwired.com/latest_updates /article_44516b06-527f-11e4-a15c-0017a43b2370.html [https://perma.cc/L6K6-FW32]. 12 The cities of Munroe Falls and Broadview Heights are among Ohio localities that have tried to exert control over drilling activity using zoning regulations and other ordinances, rather than outright bans. See Sara Dorn, The Fracking Debate: How Communities are Trying to Control Drilling, THE PLAIN DEALER, Aug. 14, 2014, http://www.cleveland.com /hillcrest/index.ssf/2014/07/the_fracking_debate_how_commun.html [https://perma.cc /S93S -KJVY]. 13 See Bob Downing, Communities Seek Ways to Override State Control of Oil and Gas Drilling Boom, AKRON BEACON J., Sept. 10, 2012, http://www.ohio.com/news/local-news /communities-seek-ways-to-override-state-control-of-oil-and-gas-drilling-boom-1.332880 [https://perma.cc/X7DX-7YMB]. 14 Id. 15 See Brief of Appellant at 2–3, State ex rel. Morrison v. Beck Energy Corp., 989 N.E.2d 85 (Ohio App. 9 Dist. 2013) (No. 2013-0465), 2013 WL 5229893, at 2. 2016] WHEN STATES’ LEGISLATION & CONSTITUTIONS COLLIDE 61 local police, sanitary and other similar regulations, as are not in conflict with general laws.”16 This Article explores the nationally common problem of tension and conflict among state oil and gas statutes, constitutional home rule, and local control by considering intersections and tensions among the Ohio Constitution’s home rule authority, the Ohio oil and gas law’s preemption provision, and the many regulatory efforts of Ohio’s local governments. It explores the scope of the Ohio Constitution’s home rule authority, in part, by evaluating courts’ statements on the validity of several types of local ordinances, as they confront home rule and a legislative attempt at preemption. Types of local ordinances evaluated include those that pro- hibit or ban drilling, those that impose additional permitting fees, hear- ings or other requirements upon drillers, and those that pertain to more traditional exercises of zoning authority. The Article also considers some similar local control efforts in the region—in particular, in New York and Pennsylvania—which have constitutional home rule provisions similar to Ohio’s, and where, like Ohio, the shale oil and gas industry is active. By considering the constitutions, legislation, and local control efforts of nearby states that are, like Ohio, within the Utica, Marcellus, and Barnett shale plays, this Article gauges the legal circumstances under which localities might regulate the actions of the shale oil and gas industry within their borders, and under what circumstances these efforts might succeed. Be- cause this problem presents itself throughout the country, this Article looks briefly at similar circumstances in other regions, in particular, Colorado and Texas. These states have active shale oil and gas industries, legisla- tures vigorously working to preempt local control, and some engaged local communities hoping to exert some influence over oil and gas activities in their jurisdictions. Although it comes in many variations, the main question is this: does constitutional home rule, when coupled with statutory preemption of local control, allow any room for local regulation of the shale oil and gas industry? I. THE MANY MASTERS OF SHALE OIL AND GAS PRODUCTION: LEGISLATION, CONSTITUTIONS, AND THE COURTS A. Ohio’s Oil and Gas Law Theoretically, localities can use their police power to regulate activities within their borders for the health, safety, and welfare of their 16 OHIO CONST. art. XVIII, § 3. 62 WM. & MARY ENVTL. L. & POL’Y REV. [Vol. 41:55 citizens.17 Ohio’s constitution even includes a home rule provision to help protect this authority.18 Localities can enact and enforce substantial con- trols over the activities within their borders.19 They can enact noise ordi- nances, zoning plans, and traffic controls. They can decide where houses can be built, and in which areas commercial and industrial activities may take place. These are traditional exercises of land use and zoning powers.20 That said, state legislatures sometimes enact laws that claim specific, and sometimes broad, regulatory authority, thereby preempting the regulatory power of the local jurisdiction. That is what the Ohio legislature did in Ohio Revised Code section 1509.02, Ohio’s oil and gas law. This section will address the evolution of that statute to understand how, through serial amendments, section 1509.02 evolved to become the restrictive, putatively preemptive statute it is today.21 17 See, e.g., State ex rel. Petit v. Wagner, 164 N.E.2d 574, 575–76 (Ohio 1960) (noting the inherent power of municipalities to perform certain functions without state approval); Fondessy Enter. v. City of Oregon, 492 N.E.2d 797, 799–800 (1986) (explaining that “Section 3, Article XVIII of the Ohio Constitution grants municipalities ‘. . . the power to adopt and enforce within their limits such local police, sanitary and other similar regulations, as are not in conflict with general laws.’” This “power of home rule” is constitutionally conferred upon municipalities and may not be withdrawn by the General Assembly); Akron v. Scalera, 19 N.E.2d 279, 279–80 (1939). See also George L. Blum, Annotation, Validity of Zoning Regulations Prohibiting or Regulating Removal or Exploi- tation of Oil and Gas, Including Hydrofracking, 84 A.L.R. 6th 133 (2013). 18 OHIO CONST. art. XVIII, § 3. 19 See, e.g., Cleveland v. Shaker Heights, 507 N.E.2d 323, 326 (Ohio 1987) (holding that it was within a city’s home rule police power to regulate traffic, despite a state statute that all cities keep their streets “open”); Cincinnati v. Welty, 413 N.E.2d 1177, 1178 (Ohio 1980) (holding that the City of Cincinnati had traditional home rule purview over what type of vehicle could drive on its streets when that had a “real and substantial relation” to its police powers). 20 See Wendy H. Gridley, Municipal Home Rule, 128 MEMBERS ONLY 8 (Jan. 26, 2010), http://www.lsc.ohio.gov/membersonly/128municipalhomerule.pdf [https://perma.cc/2QRL -32U7] (explaining that a municipality has the power to enact zoning regulations to ad- dress concerns such as “traffic control, traffic volume, property values, enhancement of municipal revenue, costs of municipal improvement, land use, nuisance abatement, and the general welfare and development of the community as a whole.”). See also Morrison, 37 N.E.3d at 128 (O’Donnell, J., concurring) (explaining that, in addition to the Ohio Constitution, municipalities’ zoning powers are derived from O.R.C. § 713.07 which provides that municipalities may regulate or restrict the use of a premises if the restric- tion is “in the interest of the promotion of health, safety, convenience, comfort, prosperity, or general welfare”). 21 This section draws heavily on the author’s previously published column in Crain’s Cleveland Business regarding the development of Ohio’s oil and gas law, granting in- creasing control to the Ohio Department of Natural Resources, and decreasing involve- ment of local authorities. See Heidi G. Robertson, The Road to State Control Over Drilling 2016] WHEN STATES’ LEGISLATION & CONSTITUTIONS COLLIDE 63 The Ohio legislature worked hard to establish tight state regula- tory control over shale oil and gas operations. It created a uniform state- wide regulatory system by constraining the ability of local jurisdictions to enact their own controls, and by consolidating decision-making authority in a state agency. When Ohio Revised Code section 1509.02 was first en- acted in 1964,22 it merely “created in the department of natural resources the division of oil and gas . . . .”23 The Ohio legislature has amended it many times since then. Most of the amendments are not relevant to the local control question—instead dealing with funding issues.24 In 2000, an amendment combined the Division of Mines and Rec- lamation and the Division of Oil and Gas—both within the Ohio Depart- ment of Natural Resources (“DNR”), and created the Division of Mineral Resources Management.25 This change, although it affected the Division of Oil and Gas, did not yet start the legislation’s march towards eliminat- ing local control of shale oil and gas regulation. The legislature’s push to consolidate decision-making authority in the state agency began, in earnest, in 2004 with House Bill 278.26 The legislature made some important and lasting changes. This is where it first gave the Division of Oil and Gas Resources Management “sole and exclusive authority to regulate the permitting, location, and spacing of oil and gas wells within the state.”27 It declared the “regulation of oil and gas activities [to be] a matter of general statewide interest that requires uniform statewide regulation” and it declared the “rules adopted under [the new law to be] a comprehensive plan with respect to all aspects of is Paved With Legislation, CRAIN’S CLEVELAND BUS., Aug. 22, 2014, http://www.crains cleveland.com/article/20140822/BLOGS05/140829925 [https://perma.cc/N9VX-HYBZ]. 22 See OHIO REV. CODE ANN. § 1509.02 (West 1964). 23 Id.; OHIO REV. CODE ANN. § 1509.02 (West 1977), amended by OHIO REV. CODE ANN. § 1509.02 (Supp. 1984) (adding the following language: “All fines imposed under 1509.99 of the Revised Code shall be paid to the treasurer of state and credited by him to the oil and gas well plugging fund created by section 1509.071 of the Revised Code.”). 24 See OHIO REV. CODE ANN. § 1509.02 (1975); OHIO REV. CODE ANN. § 1509.02 (1999); OHIO REV. CODE ANN. § 1509.02 (2001); OHIO REV. CODE ANN. § 1509.02 (1984), amended by OHIO REV. CODE ANN. § 1509.02 (Supp. 1995) (providing for the creation of an “oil and gas permit fee” special account which would be appropriated to the division of oil and gas biennially); OHIO REV. CODE ANN. § 1509.02 (1995), amended by OHIO REV. CODE ANN. § 1509.02 (1999) (removing the biennial appropriation provision and instead provided that “the fund shall be used only for the expenses of the division associated with the administration of the Natural Gas Policy Act of 1978”). 25 1999 Ohio Laws 45. 26 H.B. 278, 125th Gen. Assemb. (Ohio 2004) (enacted), updated by 2004 Ohio Laws 98; see also Robertson, supra note 21. 27 2004 Ohio Laws 98 (codified as OHIO REV. CODE ANN. § 1509.02 (West 2004)).
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